Which of the following has the ultimate control of a company?
- A. board of directors
- B. employees
- C. shareholders
- D. management
Factory overheads are also known as
- A. direct manufacturing
- B. direct expenses
- C. indirect cost
- D. direct labour
Which of the following is not an advantage of control account?
- A. difficulty in committing fraud
- B. it can be used to detect missing figure
- C. helps to determine profit and loss
- D. helps in locating errors
The following was extracted from the books of MEGA COMPANY NIG. LTD
|
₦ |
|
|
Trade debtors |
350,000 |
|
Fixtures and fittings |
600,000 |
|
Cash at bank |
25,000 |
|
Cash in hand |
5,500 |
|
Trade creditors |
116,500 |
|
Bank overdraft |
7,500 |
|
Building |
950,000 |
|
Motor van |
35,000 |
The working capital of the company is
- A. ₦156,000
- B. ₦280,000
- C. ₦565,000
- D. ₦256,500
In company account, dividend payments are effected in which of the following accounts?
- A. realization
- B. current
- C. appropriation
- D. capital
Income and Expenditure account is the same as the ——— of a sole trader
- A. balance sheet
- B. trading account
- C. profit and loss account
- D. cash book
The Accounting term used to describe a partnership firm that stops operation and disposes its assets is
- A. Amortization
- B. Revaluation
- C. Realization
- D. Dissolution
The purchases ledger control account is also known as
- A. bill payable control account
- B. credit purchase control account
- C. creditors control account
- D. total purchase
Which of the following expenses is *not* apportined in proportion to turnover?
- A. rent
- B. commission
- C. discount allowed
- D. carriage outwards
Which of the following is charged to trading account?
- A. rent
- B. discount allowed
- C. carriage inwards
- D. carriage outwards
The short term solvency of a company is determined with ——- ratio
- A. acid test
- B. gross profit margin
- C. debt to equity
- D. current
The assumption that a business will continue to exist into the foreseeanle future is recognized by a concept called
- A. matching
- B. business entity
- C. going concern
- D. historical cost
Shares are said to be authorized when they are
- A. paid -up
- B. called up
- C. offered for sale
- D. subscribed
Which of the following is found on the credit side of a profit and loss account?
- A. advertising
- B. dividend received
- C. wages and salaries
- D. bank charges
Current assets are shown in the balance sheet in order of performance as
- A. debtors, stock, bank and cash
- B. stock, debtors, bank and cash
- C. stock, bank, debtors and cash
- D. debtors, stock, cash and bank
|
₦ |
|
|
Manufacturing wages |
42,000 |
|
Factory rent |
880 |
|
Raw materials: Stock 1/1/16 |
1,000 |
|
Purchases |
16,000 |
|
Stock 31/12/16 |
1,400 |
|
Depreciation of Plants and Machinery |
800 |
|
Royalties |
300 |
|
Indirect wages |
18,000 |
|
General indirect expenses |
620 |
What is the value of the indirect manufacturing cost?
- A. ₦57,900
- B. ₦18,200
- C. ₦20,300
- D. ₦23,000
|
₦ |
|
|
Manufacturing wages |
42000 |
|
Factory rent |
880 |
|
Raw materials: Stock 1/1/16 |
1000 |
|
Purchases |
16000 |
|
Stock 31/12/16 |
1400 |
|
Depreciation of Plants and Machinery |
800 |
|
Royalties |
300 |
|
Indirect wages |
18,000 |
|
General indirect expenses |
620 |
The prime cost is
- A. ₦57,900
- B. ₦42,000
- C. ₦45,000
- D. ₦78,200
|
₦ |
|
|
Manufacturing wages |
42,000 |
|
Factory rent |
880 |
|
Raw materials: Stock 1/1/16 |
1,000 |
|
Purchases |
16,000 |
|
Stock 31/12/16 |
1,400 |
|
Depreciation of Plants and Machinery |
800 |
|
Royalties |
300 |
|
Indirect wages |
18,000 |
|
General indirect expenses |
620 |
Calculate the cost of raw materials consumed
- A. ₦15,600
- B. ₦17,000
- C. ₦42,000
- D. ₦20,300
The document which is legal charter of a company that defines the limits of a company’s field of operation is known as
- A. articles of association
- B. equity share certificate
- C. prospectus
- D. memorandum of association
Larry Limited has 4,000,000 ordinary shares of 50k each and 150,000 5% prefrence shares of ₦1 each fully paid.
|
₦ |
|
|
Net profit for the year |
90,000 |
|
Interim dividends paid: |
|
|
Ordinary shares |
25,000 |
|
Profit and loss appropriation b/f |
10,000 |
|
Goodwill written off |
1,000 |
At the end of the period, what is the balance of the profit and loss appropriation account?
- A. ₦66,5000
- B. ₦90,000
- C. ₦100,000
- D. ₦74,000
Larry Limited has 4,000,000 ordinary shares of 50k each and 150,000 5% prefrence shares of ₦1 each fully paid.
|
₦ |
|
|
Net profit for the year |
90,000 |
|
Interim dividends paid: |
|
|
Ordinary shares |
25,000 |
|
Profit and loss appropriation b/f |
10,000 |
|
Goodwill written off |
1,000 |
The amount of preference shares dividends payable at the end of the year is
- A. ₦10,000
- B. ₦25,000
- C. ₦7,500
- D. ₦20,000